Analysis: Shiseido Company (4911) Posts 1Q Net Loss, Misses Earnings Estimates Despite Higher Sales

Shiseido Company on Smartkarma

Analysts on Smartkarma, such as Steve Zhou, CFA, have recently shared insightful research reports on Shiseido Company (4911 JP). In his report titled “Shiseido (4911 JP): Japan On Track While China Was Weak,” Zhou highlights that Shiseido reported higher operating profit in FY23 than expected. However, the company’s China business weakened in 4Q23, leading to cautious guidance for 2024/25 due to ongoing challenges, such as the impact of nuclear wastewater. Despite the strong performance in Japan, the China segment’s struggles may influence the company’s valuation in the near term.

In another report, “Shiseido (4911 JP): This Fallen Angel Is Fixable,” Zhou emphasizes Shiseido’s heavy reliance on Japan and China for sales, with expectations of improvements in these key markets. The report underscores the company’s attractive valuation, making it a potentially promising investment opportunity. With the possibility of sector-wide interest sparked by Blackstone’s potential bid for L’Occitane, Shiseido’s future performance and strategic decisions could draw increased attention from investors looking for value in the cosmetic industry.

A look at Shiseido Company Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Shiseido Company, Limited, a leading manufacturer of cosmetic and toiletry products, shows a promising long-term outlook based on its Smartkarma Smart Scores. With high scores in Growth, Resilience, and Momentum, the company is positioned well for future success in the industry. The Growth score of 5 indicates a strong potential for expansion and development within the market, while the Resilience and Momentum scores of 3 each point towards the company’s ability to withstand challenges and maintain a steady performance.

Although Shiseido Company scores relatively lower in Value and Dividend with scores of 2 for both factors, its robust performance in Growth, Resilience, and Momentum suggest a positive trajectory for the company in the long run. As a manufacturer of a wide range of beauty products, toiletries, and pharmaceuticals, Shiseido Company‘s innovative approach and market positioning contribute to its overall strength and potential for growth in the future.

### Shiseido Company, Limited manufactures cosmetic and toiletry products. The Company offers an array of makeup and skin-care products, toiletries, beauty salon, pharmaceuticals, foodstuffs, and fine chemicals. ###

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